Belén Garijo assumed the role of chief executive at French pharmaceutical company Sanofi in May, tasked primarily with revitalizing the company’s drug development pipeline to prepare for the eventual expiration of its top-selling product, Dupixent. Since the departure of former CEO Paul Hudson in February, who was criticized for failing to deliver significant new treatments, Garijo has initiated a series of strategic measures including a major portfolio reshuffle and leadership changes within research and development.
Sanofi’s reliance on Dupixent, an anti-inflammatory drug that accounted for €15.7 billion of its €43.6 billion revenue in 2023, presents a significant risk as its US patent protection is due to expire in the early 2030s. Unlike many of its European peers, Sanofi’s current pipeline is considered thin, with only six blockbuster drugs outside of vaccines. Its next best-selling product, the antiviral vaccine Beyfortus, generates just over a tenth of Dupixent’s revenue.
Garijo, a medical doctor and former head of Merck KGaA, was not widely expected to lead the turnaround when appointed but has moved quickly since taking charge. She replaced Sanofi’s R&D chief with Paulo Fontoura, a former Roche executive, and discontinued plans to pursue approval for Amelitelimab, an eczema drug once seen as a potential Dupixent successor. Additionally, she has divested 20 older medicines and three manufacturing facilities to German group Cheplapharm, receiving a 26.4 percent stake in return.
Despite these actions, analysts and investors remain cautious. Many believe Sanofi’s internally developed pipeline is unlikely to fill the looming revenue gap from Dupixent’s patent expiry. They advocate for a strategy focusing on acquiring more advanced or near-commercial drugs, a direction Garijo has signaled openness to. Earlier this year, Sanofi expanded its collaboration with US drugmaker Regeneron in an $8 billion deal aimed at developing four new immunology drugs, marking a step toward external innovation after a history of litigation between the companies.
Financially, Sanofi appears well-positioned to pursue acquisitions, with Chief Financial Officer François-Xavier Roger stating the company could allocate up to €25 billion for potential deals. Nonetheless, high valuations in the biotech sector may complicate such transactions. The company is reportedly exploring late-stage and commercial assets in core areas including immunology, vaccines, and rare diseases. Sanofi has declined to comment on rumors about specific acquisition talks.
Garijo’s experience at Merck KGaA, where she cut debt significantly but fell short of growth targets, offers both hope and caution. Observers note her reputation for making difficult decisions and disciplined portfolio management but emphasize that any turnaround in R&D productivity is likely to be a long-term process, extending beyond her current tenure. With Sanofi’s chairman Frédéric Oudéa expected to seek re-election next year, questions remain about the company’s leadership continuity and long-term strategic vision.
Sanofi maintains that it does not depend on a single replacement for Dupixent but aims to "build multiple sources of growth" through internal development, disciplined R&D investment, and external partnerships. The company has promised to provide further detail on its strategy by the end of the year.